“Legislators and activist groups are using the economic crisis as cover to build an ever-increasing safety net that rewards reckless behavior at the expense of responsible consumers” I agree with Tim. The government is putting training wheels on voting adults. Not good. You can read the full article in the Sun Sentinel.
Category Archives: national
The WTF news of the day
One week Senator Dodd is raised more than $44,000 from pawnshop owners and payday lenders. The next week, he joins Senator Durbin on the “holier than thou” bandwagon and supports a bill that’s trying to cap rates at 36% across the board. This does not make any sense. I can see two scenarios: It’s a […]
Posted in national
Senate Bill Would Limit Collection on High-Rate Loans
There is a bill before the Senate judiciary committee that would make it harder to collect on high risk loans, among them are payday loans. The bill would limit creditors from collecting on high-interest rate loans in bankruptcy court and may give consumers leverage to negotiate better terms. I don’t think this is a bad […]
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Guitierrez and Durbin bills heating up in Washington
Rep. Luis Gutierrez will likely bring his Payday Loan Reform Act of 2009 up for a committee vote this session. This bill his getting a lot of heat from both lenders and consumer groups. Personally, if the industry can get a favorable law, they should jump on it. Rate caps scare me.
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NSF fees under fire from law makers
“Overdraft charges bring in big-time revenue for banks and represent one of the biggest slices of the short-term unsecured credit market — bigger than credit card over-the-limit penalties and much bigger than payday loans. Indeed, overdraft penalties are short-term loans, and they can be even costlier than their payday cousins.” “Michael Flores, CEO of Bretton […]
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Online Loan Sharks Trap People Into Debt — Then Disappear
Ok. Let’s get past the bullshit title of this blog post in the Huffington Post. Online payday lending is a completely different ball game. Most of the websites are lead generation companies. OLA has to become more transparent, if they want to be effective. I’m sure lenders do not want to advertise this way b/c […]
Also posted in Internet Lending
Sen. Dodd taking heat over support of payday loan industry
The Huffington Post is giving Senator Dodd for allowing the OLA (Online Lenders Alliance) for sponsoring a dinner. Now, did they actually sponsor the dinner? No. Why not? The OLA are voters just like anyone else. Why can’t they get their story heard? This is just another chapter in the negative payday loan image saga. […]
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More 36% jabber
Unfortunately, the people in office don’t know what it’s like to need $500 yesterday. Payday loans may hurt people that use them incorrectly, just like anything else in life. If you drink too much water you can die. What solution do these legislators have for people in need of a car repair or a repo […]
Also posted in 36%
An Open Letter to Congressman Gutierrez
I found this letter at Payday Pundit. It’s a plea to Rep. Guitierrez to not cap rates on payday loans. The letter is well written and consice. Personally, I think Rep. Guitierrez is sticking his neck out on this issue. I believe he realizes that there is a need for a cash advance product. Payday […]
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The problem with consumer groups
Spokeswoman Kathleen Day for the Center for Responsible Lending says “If you can’t make money on that (36%), you shouldn’t be in business.” It’s like saying you can’t charge more than 1/30 of a month’s rent to get a one-night hotel room. If a studio apartment is $1000 per month, you can only charge $33 […]
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